Chapter 7 Multiple-choice questions

1. Some British and US firms seem to assume that, since English is the international language of business, their staff can safely ignore foreign languages. This approach could be problematic where:

Prospective foreign customers cannot understand English technical or legal terms.

Prospective foreign suppliers are fluent in written English but do not speak it very well.

English is an official language e.g. in India.

All of the options.

2. Hofstede argues that:

International firms can easily transfer their ways of working from one country to another.

Business does not need to take into account the norms and values of the countries where they operate.

Each country has a single culture.

National culture is more influential than organizational culture.

3. Different cultures sometimes vary in their attitudes to time. In cultures where people follow event time:

It is important to turn up for meetings on time.

Much time is devoted to having a chat over a coffee during the working day.

People get irritated if meetings do not start on time.

Where an event is running over time, people do not wait for it to finish before moving on to the next event.

4. In many countries the ratio of older people to total population is rising rapidly. This is important to business because:

It could lead to a falling tax burden.

It will increase the supply of labour.

It could change the pattern of demand for goods and services.

It could increase economic growth.

5. Ageing of the population is caused by:

Low birth rates and increasing life expectancy.

High death rates.

The immigration of relatively young workers from other countries.

High fertility rates.

6. Organizations such as the ILO consider that the high rates of youth unemployment in many countries are, to an important degree, due to:

Young people being lazy.

Young people demanding too high wages.

The expansion of the black economy.

The global economic crisis and weak recovery of the global economy.

7. The liberal social model holds that:

Generous welfare benefits are necessary to protect the poorest in society.

The State is best equipped to deal with poverty.

Low taxes lead to a more efficient economy.

Markets need to be tightly regulated.

8. The social democratic welfare model holds that:

Dialogue between the social partners is not worthwhile.

Unemployment is best dealt with through market forces.

High levels of public expenditure should be avoided.

Governments should actively assist people in finding work.

9. Researchers have found that attitudes to contracts vary from one culture to another. Which of the following is correct?

Western cultures see contracts, once signed, as changeable.

Eastern cultures see contracts, once signed, as unchangeable.

Western cultures see contracts, once signed, as set in stone.

Both western and eastern cultures see contracts, once signed, as set in stone.

10. Hofstede found that some countries like Germany have a long-term orientation while others like the US and the UK focus on the short term. His results mean that:

US business would be happy to invest in nuclear power and space exploration without any government help.

British businesses prefer investments with a quick return.

Firms in Brazil shy away from ten-year investment projects.

Indian business is impatient for a return on its investments.

Chapter 7 Multiple-choice questions

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